Congressional Resolution Supporting Mortgage Interest Deduction :: The Construction Management Pro

Congressional Resolution Supporting Mortgage Interest Deduction

Rep. Gary Miller (R-Calif.), has introduced a resolution in the House of Representatives, expressing a “sense of Congress” that the current federal income tax deduction for interest paid on debt secured by a first or second home “should not be further restricted.” I have kept these blog post non partisan and a political. However, the resolution is suggesting that at a time when efforts are being made by this congress to cut the CDBG program by 62%, and public housing capital funds by 43%, no reduction in the mortgage interest deduction (MID) program should be made. So let’s be clear. the current MID program allows for the deduction of mortgage interest payments for principal and second homes with mortgages up to $1,000,000. The funds allocated to the CDBG program must be used to provide assistance to “low and moderate income households, eleminate slum or blight or address another community development need having a particular urgency.” 

I received an email that says that “this Resolution is an important symbolic gesture that shows its co-sponsors are aware of the critical role that the MID plays in supporting homeownership in this country.” However, supporters of this resolution have also stated that it was federal housing policy that lead us to the housing crisis we have just faced; that congress should no be picking winners and losers through the tax code.

So let’s be clear. Congress is currently debating the merits of reducing funds to eliminate slums and blight in our community by 62%, reduce by 43% the funds used to make capital improvements to public housing, yet maintaining the tax deductibility of mortgage interest on a second home’s $1,000,000 mortgage. Need I say more?

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